MCB_MEBL & UBL_1QCY21 Result Previews, (AKD Daily, Apr 13, 2021)
AKD Daily
MCB, MEBL & UBL: 1QCY21 Result Previews
MCB 1QCY21 EPS likely to stand at PkR5.5: MCB Bank Limited (MCB) is scheduled to announce its 1QCY21 result on Apr 20’2021 where we expect it to post NPAT of PkR6.5bn (EPS: PkR5.48), flat compared to same period last year but +8.0% on a sequential basis. The uptick in earnings on a sequential basis mostly relate to potentially lower provisioning expense in the ensuing quarter (PkR1.0bn in 1QCY21E, down 50%QoQ) and high capital gains (1QCY21E: PkR1.3bn vs. PkR0.5bn in 4QCY21) as indicated by banks’ net sell of US$21.8mn in 1QCY21 vs. net sell of US$15.3mn in the previous quarter. Overall, net interest income is expected to decrease marginally (down 5.5%QoQ) in the current quarter with full repricing of assets concluded in the 4QCY20 whereas non-funded income is expected to jump 16.5%QoQ. Along with the results, the bank is expected to announce a dividend of PkR5/sh.
MEBL earnings to clock in at PkR4.1/sh in 1QCY21: Meezan Bank Limited (MEBL) is scheduled to announce its 1QCY21 result on Apr 20, 2021 where we expect the bank to record earnings of PkR4.1/sh vs. PkR3.5/sh in the same period last year, signifying an increase of 17.7%YoY. The result could be accompanied with a dividend of PkR1/sh whereas bonus issue could also be a part of the announcement as seen in previous years. On a sequential basis, earnings are likely to jump 38.1% largely attributable to lower provisioning expense in the current quarter (1QCY21E: PkR2.0bn compared to PkR4.0bn in the previous quarter, traceable to a full classification of a certain party). Net spread margins are expected to face marginal attrition compared to 4QCY20 margin of 5.1%, taking indication from trend in revaluation surplus on investments (PkR8.5bn in 4QCY20 vs. PkR9.8bn in 3QCY20) while net interest income is expected to register an increment of 4.6%QoQ — credited to balance sheet volumetric growth.
UBL 1QCY21 earnings likely to stand at PkR5.5/sh on potentially higher capital gains: United Bank Limited (UBL) is scheduled to announce its 1QCY21 results on Apr 21, 2021 where we foresee the bank announcing earnings of PkR6.6bn (EPS: PkR5.5) for the period vs. PkR4.9bn (EPS: PkR4.0) in the same period last year. On a sequential basis, earnings are likely to grow 27.5% primarily a function of, i) potentially higher capital gains attributable to power sector stocks which occupy 35.0% of total listed equity investments of the bank (EPS contribution: PkR1.1), and ii) lower administrative expenses (down 11.6%). To highlight, the banking sector c. sold US$11.5mn in power sector culminating into a share of 52.7% of total net sell. Further, while we have built-in a cost of provisioning of 0.4% into our estimates, a surprise cannot be ruled out given favorable movement in stock of overseas NPLs in US$ terms in the previous quarter. Together with the result, we expect the bank to announce a dividend of PkR2.5/sh.
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Meezan Bank Limited is an Islamic commercial bank. The Bank is engaged in corporate, commercial, consumer, investment and retail banking activities. It offers a range of Islamic banking products and services through a retail banking network of over 550 branches in approximately 140 cities to its corporate, commercial and small and medium-sized enterprise (SME) customers based on their financial requirements. It provides personal banking, business banking, premium banking and branchless banking. The Bank also offers Meezan Rupee Current Account, Karobari Munafa Account, Meezan Rupee Savings Account, Meezan Business Plus Account, Meezan Bachat Account, Meezan Kids Club Account, Meezan Teens Club Account, Meezan Asaan Current Account, Meezan Kafalah, Certificates of Islamic Investment, Meezan Amdan Certificate and Dollar Mudarabah Certificate. It has assets in agriculture, food, forestry and fishing; cement, and others. The Bank operates only in Pakistan.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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